Date
17 August 2017
The Bank of Japan will have a new board member next month, strengthening the hands of Governor Haruhiko Kuroda in pursuing aggressive easing policies. Credit: wikimedia commons
The Bank of Japan will have a new board member next month, strengthening the hands of Governor Haruhiko Kuroda in pursuing aggressive easing policies. Credit: wikimedia commons

Japan picks reflationist advocate for BoJ board

The Japanese government on Thursday picked Yutaka Harada, a strong champion of aggressive monetary easing, as a candidate to replace an outgoing Bank of Japan (BoJ) policy board member.

Harada, a 64-year-old professor at Waseda University, will replace Ryuzo Miyao on BoJ’s nine-member board when the latter’s term expires on March 25, the Wall Street Journal reported. 

The nomination of Harada, who advocates reflationary policies, underscores how Prime Minister Shinzo Abe plans to continue supporting BoJ in its massive easing program as a way to fight deflation and spur growth, the paper said.

Harada’s nomination is expected to win approval from parliament easily as Abe’s ruling coalition has a comfortable majority in both chambers.

The appointment will give central bank governor Haruhiko Kuroda more latitude in pursuing aggressive easing following divisions recently among the bank’s policy board members.

In late October, BoJ’s board voted for some easing steps, but only by a close 5-4 decision, as questions were raised over the policy of maintaining a 2 percent inflation target, the report noted.

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RC

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